US: DOJ may seek prosecution in UBS libor case

According to Bloomberg, citing people familiar with the matter, the DOJ is set to rip up its agreement to not prosecute UBS Group AG for rigging benchmark interest rates.

The move by the US would be a first for the industry, making good on a March threat by a senior Justice Department official to revoke such agreements. UBS’s cooperation in the currency probe may help shield it from antitrust charges in that matter. However, the bank is still exposed to fraud charges in that case.

UBS had previously been among the banks expected to enter a guilty plea on Wednesday with a non-prosecution agreement. Banks entering guilty pleas also need to receive permission from the Securities and Exchange Commission to prevent the criminal cases from triggering penalties that would disqualify them from other businesses, including managing mutual funds.

Bank executives have said guilty pleas could topple their operations if they don’t first receive such waivers.

The head of the Justice Department’s criminal division Leslie Caldwell, said in March she wouldn’t hesitate to tear up non- or deferred-prosecution agreements Bloomberg reported.

Full content: Bloomberg

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.